Bank of New York Mellon Corp raised its stake in CAVA Group, Inc. (NYSE:CAVA – Free Report) by 2.3% in the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 647,718 shares of the company’s stock after acquiring an additional 14,861 shares during the quarter. Bank of New York Mellon Corp owned approximately 0.56% of CAVA Group worth $52,400,000 at the end of the most recent quarter.
Several other institutional investors and hedge funds have also made changes to their positions in the stock. Los Angeles Capital Management LLC purchased a new stake in CAVA Group during the 4th quarter worth about $25,000. TD Private Client Wealth LLC raised its stake in CAVA Group by 118.2% in the 4th quarter. TD Private Client Wealth LLC now owns 600 shares of the company’s stock valued at $35,000 after purchasing an additional 325 shares during the last quarter. EverSource Wealth Advisors LLC lifted its holdings in CAVA Group by 115.7% in the 4th quarter. EverSource Wealth Advisors LLC now owns 647 shares of the company’s stock valued at $38,000 after purchasing an additional 347 shares in the last quarter. Allworth Financial LP boosted its stake in shares of CAVA Group by 57.4% during the 4th quarter. Allworth Financial LP now owns 650 shares of the company’s stock worth $38,000 after purchasing an additional 237 shares during the last quarter. Finally, Advisors Asset Management Inc. boosted its stake in shares of CAVA Group by 53.5% during the 4th quarter. Advisors Asset Management Inc. now owns 694 shares of the company’s stock worth $41,000 after purchasing an additional 242 shares during the last quarter. 73.15% of the stock is currently owned by hedge funds and other institutional investors.
Analyst Ratings Changes A number of equities analysts have recently weighed in on the stock. Citigroup boosted their price objective on shares of CAVA Group from $75.00 to $92.00 and gave the company a “neutral” rating in a research report on Monday, May 4th. Weiss Ratings upgraded shares of CAVA Group from a “hold (c-)” rating to a “hold (c)” rating in a research report on Wednesday, May 20th. Freedom Capital raised shares of CAVA Group to a “hold” rating in a research note on Wednesday, July 1st. KeyCorp boosted their price target on CAVA Group from $95.00 to $105.00 and gave the company an “overweight” rating in a report on Monday, April 20th. Finally, Mizuho increased their price target on CAVA Group from $72.00 to $80.00 and gave the stock a “neutral” rating in a research note on Thursday, April 2nd. One investment analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $93.54.
View Our Latest Stock Report on CAVA Group
CAVA Group Stock Performance CAVA Group stock opened at $63.20 on Friday. CAVA Group, Inc. has a 1 year low of $43.41 and a 1 year high of $98.79. The firm has a 50 day moving average price of $76.92 and a 200 day moving average price of $77.29. The company has a market cap of $7.36 billion, a price-to-earnings ratio of 121.54, a PEG ratio of 4.29 and a beta of 1.69.
CAVA Group (NYSE:CAVA – Get Free Report) last posted its quarterly earnings results on Tuesday, May 19th. The company reported $0.20 earnings per share for the quarter, topping analysts’ consensus estimates of $0.17 by $0.03. The company had revenue of $438.27 million for the quarter, compared to the consensus estimate of $360.89 million. CAVA Group had a net margin of 4.79% and a return on equity of 7.92%. CAVA Group’s revenue was up 32.1% on a year-over-year basis. During the same quarter last year, the firm posted $0.22 earnings per share. Sell-side analysts predict that CAVA Group, Inc. will post 0.54 EPS for the current year.
Insider Buying and Selling at CAVA Group In other CAVA Group news, insider Theodoros Xenohristos sold 3,252 shares of the business’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $89.43, for a total transaction of $290,826.36. Following the completion of the sale, the insider owned 324,630 shares of the company’s stock, valued at approximately $29,031,660.90. The trade was a 0.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Kelly Costanza sold 12,490 shares of the company’s stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $90.00, for a total value of $1,124,100.00. Following the sale, the insider owned 98,490 shares of the company’s stock, valued at $8,864,100. This represents a 11.25% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 91,747 shares of company stock worth $7,970,838. 6.70% of the stock is currently owned by company insiders.
CAVA Group Profile (Free Report)
CAVA Group, Inc (NYSE: CAVA) is a leading fast-casual restaurant company specializing in Mediterranean-inspired cuisine. Operating under the CAVA brand, the company offers customizable bowls, pitas and salads built around a variety of proteins, grains, fresh vegetables and house-made spreads. With a focus on high-quality ingredients and made-to-order preparation, CAVA aims to deliver a casual yet elevated dining experience for dine-in, takeout and catering customers.
Founded in 2011 in the Washington, DC metro area by Ike Grigoropoulos, Dimitri Katsanis and Brett Schulman, CAVA has pursued an aggressive growth strategy that included the 2018 acquisition of Zoe’s Kitchen.
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Cava Group (CAVA - Free Report) ended the recent trading session at $63.21, demonstrating a +1.38% change from the preceding day's closing price. This move outpaced the S&P 500's daily loss of 1.21%. Elsewhere, the Dow saw a downswing of 0.97%, while the tech-heavy Nasdaq depreciated by 2.15%.
Shares of the Mediterranean restaurant chain witnessed a loss of 24.19% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 2.27%, and the S&P 500's gain of 0.42%.
The investment community will be paying close attention to the earnings performance of Cava Group in its upcoming release. The company is slated to reveal its earnings on August 11, 2026. The company is predicted to post an EPS of $0.17, indicating a 6.25% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $353.13 million, indicating a 25.84% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.54 per share and revenue of $1.49 billion, which would represent changes of 0% and +26.17%, respectively, from the prior year.
Any recent changes to analyst estimates for Cava Group should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.37% downward. At present, Cava Group boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Cava Group is presently being traded at a Forward P/E ratio of 114.82. This expresses a premium compared to the average Forward P/E of 20.11 of its industry.
We can additionally observe that CAVA currently boasts a PEG ratio of 4.29. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.96 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 209, putting it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Cava Group (CAVA - Free Report) , which belongs to the Zacks Retail - Restaurants industry, could be a great candidate to consider.
This Mediterranean restaurant chain has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 25.49%.
For the last reported quarter, Cava came out with earnings of $0.2 per share versus the Zacks Consensus Estimate of $0.17 per share, representing a surprise of 17.65%. For the previous quarter, the company was expected to post earnings of $0.03 per share and it actually produced earnings of $0.04 per share, delivering a surprise of 33.33%.
Price and EPS Surprise
For Cava, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Cava has an Earnings ESP of +20.30% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on August 11, 2026.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Cava Group (CAVA - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this Mediterranean restaurant chain have returned -24.2% over the past month versus the Zacks S&P 500 composite's +0.4% change. The Zacks Retail - Restaurants industry, to which Cava belongs, has gained 0.3% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Cava is expected to post earnings of $0.17 per share for the current quarter, representing a year-over-year change of +6.3%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
For the current fiscal year, the consensus earnings estimate of $0.54 points to no change from the prior year. Over the last 30 days, this estimate has changed -0.4%.
For the next fiscal year, the consensus earnings estimate of $0.71 indicates a change of +31.1% from what Cava is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Cava is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Cava, the consensus sales estimate for the current quarter of $353.13 million indicates a year-over-year change of +25.8%. For the current and next fiscal years, $1.49 billion and $1.78 billion estimates indicate +26.2% and +19.7% changes, respectively.
Last Reported Results and Surprise HistoryCava reported revenues of $438.27 million in the last reported quarter, representing a year-over-year change of +32.1%. EPS of $0.2 for the same period compares with $0.22 a year ago.
Compared to the Zacks Consensus Estimate of $419.46 million, the reported revenues represent a surprise of +4.49%. The EPS surprise was +17.65%.
Over the last four quarters, Cava surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Cava is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Cava. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
WASHINGTON--(BUSINESS WIRE)--CAVA Group, Inc. (NYSE: CAVA), the category-defining Mediterranean fast-casual restaurant brand that brings heart, health, and humanity to food, will host a conference call on Tuesday, August 11, 2026 at 5:00 PM Eastern Time to discuss second quarter 2026 financial results and provide a business update. A press release with second quarter financial results will be issued at approximately 4:10 PM Eastern Time on Tuesday, August 11, 2026. The call will be webcast live.
Tesla (TSLA 2.47%) has slipped below $400, and plenty of investors see the pullback as a bargain on a future robotaxi empire. I understand the appeal, but with July cash to put to work, I would rather own a consumer growth story I have far more conviction in: Cava Group (CAVA +1.10%).
Image source: Getty Images.
The Tesla sell-off, briefly Tesla's recent drop is worth understanding before moving on. The company actually delivered a strong quarter on volume, beating expectations, yet the stock sank anyway. Investors zeroed in on the less flattering details: shrinking profit margins as Tesla leaned on discounts and inventory to move cars, months of declining sales in its home North American market, and heavy spending on autonomy and robotics that is squeezing cash flow.
On top of that, the stock still trades at an extraordinarily high valuation that assumes self-driving success no one can yet guarantee. That is a lot of hope baked into one price, and it is why I would rather look elsewhere.
Today's Change
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-9.66
Current Price
$
381.41
Why I would rather buy Cava Cava runs a fast-growing chain of Mediterranean restaurants, and its momentum has been remarkable. In its most recent quarter, sales at established locations jumped nearly 10%, driven more by more people walking through the doors than by higher prices. That is the healthiest kind of growth a restaurant can post, because it shows customers genuinely love the concept and keep coming back.
Just as important is the runway ahead. Cava is opening restaurants at a rapid clip, recently raised its opening target for the year, and is pushing into new markets across the Midwest on its way toward a goal of 1,000 locations by 2032. Because the company is already profitable while it expands, each new restaurant tends to strengthen the business rather than drain it.
To me, a beloved brand with a long, self-funding growth path is a more dependable place to compound money than a car company betting its valuation on technology that keeps slipping.
Today's Change
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%) $
0.75
Current Price
$
68.85
Beware, though, Cava is not cheap. After a big run, a lot of its future growth is already reflected in the stock, so any slowdown in traffic or a stumble in new-market openings could hit the shares hard. A weaker consumer could also pressure restaurant spending. This is a growth stock, with the volatility that label implies.
Tesla priced at less than $400 may tempt bargain hunters, but the stock is really a bet on an uncertain autonomous future. Cava offers something I find easier to underwrite: a proven, profitable concept with years of expansion ahead. For July, I would rather buy the restaurant chain that is quietly filling its dining rooms than the automaker still trying to prove its next act. Just size it as the growth stock it is.
Cava Group (CAVA - Free Report) ended the recent trading session at $68.85, demonstrating a +1.1% change from the preceding day's closing price. This move outpaced the S&P 500's daily loss of 1.01%. On the other hand, the Dow registered a loss of 0.77%, and the technology-centric Nasdaq decreased by 1.4%.
Prior to today's trading, shares of the Mediterranean restaurant chain had lost 23.64% lagged the Retail-Wholesale sector's gain of 0.78% and the S&P 500's gain of 0.32%.
Investors will be eagerly watching for the performance of Cava Group in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.17, showcasing a 6.25% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $353.73 million, indicating a 26.06% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.55 per share and revenue of $1.49 billion, which would represent changes of +1.85% and +26.2%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Cava Group. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Cava Group is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Cava Group has a Forward P/E ratio of 124.95 right now. This indicates a premium in contrast to its industry's Forward P/E of 20.78.
We can also see that CAVA currently has a PEG ratio of 4.67. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Restaurants industry had an average PEG ratio of 2 as trading concluded yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 188, finds itself in the bottom 24% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CAVA in the coming trading sessions, be sure to utilize Zacks.com.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Cava Group (CAVA - Free Report) .
Cava currently has an average brokerage recommendation (ABR) of 1.85, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 30 brokerage firms. An ABR of 1.85 approximates between Strong Buy and Buy.
Of the 30 recommendations that derive the current ABR, 17 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 56.7% and 6.7% of all recommendations.
Brokerage Recommendation Trends for CAVA
Check price target & stock forecast for Cava here>>>
While the ABR calls for buying Cava, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Should You Invest in CAVA?In terms of earnings estimate revisions for Cava, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $0.55.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Cava. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Cava.
Cava Group (CAVA - Free Report) closed at $70.15 in the latest trading session, marking a -3.29% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.38%. Meanwhile, the Dow experienced a rise of 0.02%, and the technology-dominated Nasdaq saw an increase of 0.9%.
The Mediterranean restaurant chain's stock has dropped by 18.97% in the past month, falling short of the Retail-Wholesale sector's gain of 0.77% and the S&P 500's gain of 1.27%.
The investment community will be paying close attention to the earnings performance of Cava Group in its upcoming release. It is anticipated that the company will report an EPS of $0.17, marking a 6.25% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $353.73 million, up 26.06% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.55 per share and revenue of $1.49 billion, indicating changes of +1.85% and +26.21%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Cava Group. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Cava Group boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Cava Group has a Forward P/E ratio of 133.1 right now. Its industry sports an average Forward P/E of 20.71, so one might conclude that Cava Group is trading at a premium comparatively.
We can also see that CAVA currently has a PEG ratio of 4.97. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.97 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 190, putting it in the bottom 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
CAVA Group maintains aggressive expansion, targeting 75–77 new locations in 2026 and leveraging leadership development and technology initiatives. Q1 2026 delivered 32.2% revenue growth, 9.7% same-store sales growth, and a 25.1% restaurant-level profit margin, outpacing rising expenses. Management's insider buying and enhanced guidance for store openings and adjusted EBITDA reinforce confidence in CAVA's long-term growth trajectory.
Cava Group (CAVA - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this Mediterranean restaurant chain have returned -17.1%, compared to the Zacks S&P 500 composite's +1.1% change. During this period, the Zacks Retail - Restaurants industry, which Cava falls in, has gained 5.5%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Cava is expected to post earnings of $0.17 per share, indicating a change of +6.3% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $0.55 points to a change of +1.9% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $0.71 indicates a change of +30.2% from what Cava is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Cava.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Cava, the consensus sales estimate of $353.73 million for the current quarter points to a year-over-year change of +26.1%. The $1.49 billion and $1.78 billion estimates for the current and next fiscal years indicate changes of +26.2% and +19.5%, respectively.
Last Reported Results and Surprise HistoryCava reported revenues of $438.27 million in the last reported quarter, representing a year-over-year change of +32.1%. EPS of $0.2 for the same period compares with $0.22 a year ago.
Compared to the Zacks Consensus Estimate of $419.46 million, the reported revenues represent a surprise of +4.49%. The EPS surprise was +17.65%.
Over the last four quarters, Cava surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Cava is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Cava. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
In the latest trading session, Cava Group (CAVA - Free Report) closed at $69.74, marking a -3.02% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.45% for the day. Elsewhere, the Dow saw a downswing of 0.25%, while the tech-heavy Nasdaq depreciated by 1.16%.
Shares of the Mediterranean restaurant chain have depreciated by 2.32% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 0.18%, and the S&P 500's gain of 2.14%.
The investment community will be closely monitoring the performance of Cava Group in its forthcoming earnings report. On that day, Cava Group is projected to report earnings of $0.17 per share, which would represent year-over-year growth of 6.25%. Our most recent consensus estimate is calling for quarterly revenue of $353.73 million, up 26.06% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.55 per share and revenue of $1.49 billion, which would represent changes of +1.85% and +26.21%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cava Group. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Cava Group presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, Cava Group is holding a Forward P/E ratio of 131.95. This valuation marks a premium compared to its industry average Forward P/E of 20.01.
Meanwhile, CAVA's PEG ratio is currently 4.93. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CAVA's industry had an average PEG ratio of 1.98 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 206, positioning it in the bottom 17% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Cava Group (CAVA - Free Report) closed the most recent trading day at $79.78, moving +1.66% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 0.22%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq lost 0.66%.
Coming into today, shares of the Mediterranean restaurant chain had gained 8.34% in the past month. In that same time, the Retail-Wholesale sector lost 5.51%, while the S&P 500 lost 1.21%.
The upcoming earnings release of Cava Group will be of great interest to investors. The company is expected to report EPS of $0.17, up 6.25% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $353.73 million, indicating a 26.06% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.55 per share and revenue of $1.49 billion, which would represent changes of +1.85% and +26.21%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Cava Group. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Cava Group is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Cava Group currently has a Forward P/E ratio of 144. Its industry sports an average Forward P/E of 20.37, so one might conclude that Cava Group is trading at a premium comparatively.
Investors should also note that CAVA has a PEG ratio of 5.38 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Retail - Restaurants industry had an average PEG ratio of 2.03.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 191, finds itself in the bottom 23% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Cava Group (CAVA - Free Report) .
Cava currently has an average brokerage recommendation (ABR) of 1.86, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 29 brokerage firms. An ABR of 1.86 approximates between Strong Buy and Buy.
Of the 29 recommendations that derive the current ABR, 17 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 58.6% and 3.5% of all recommendations.
Brokerage Recommendation Trends for CAVA
Check price target & stock forecast for Cava here>>>
While the ABR calls for buying Cava, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is CAVA a Good Investment?In terms of earnings estimate revisions for Cava, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $0.55.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Cava. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Cava.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Cava Group (CAVA - Free Report) CAVA Group, Inc. operates a fast-casual Mediterranean restaurant concept built around customizable bowls and pitas, with chef-curated options alongside a build-your-own format. The company was formed as a Delaware corporation in 2015, and the first CAVA restaurant opened in 2011 in Bethesda, MD. It is headquartered in Washington, D.C. CAVA commenced trading on the New York Stock Exchange on June 15, 2023, under the ticker symbol CAVA. As of April 19, 2026, CAVA operated 459 restaurants across 29 states and Washington, D.C.
CAVA is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Retail-Wholesale stock. CAVA has a Momentum Style Score of A, and shares are up 6.5% over the past four weeks.
Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.03 to $0.55 per share. CAVA boasts an average earnings surprise of +16.6%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, CAVA should be on investors' short list.
Investors are currently weighing the high-growth trajectory of a Mediterranean grill against the global turnaround of a doughnut icon. Choosing between CAVA Group (CAVA +1.05%) and Krispy Kreme (DNUT 4.16%) requires deciding between premium pricing and recovery potential.
CAVA has established itself as a leader in healthy, customizable meals, while Krispy Kreme is focused on maximizing its "points of access" through grocery and digital partnerships. Both companies are fighting for consumer dollars in a crowded market, making their distinct financial paths a key focus for long-term investors.
The case for CAVACAVA Group is a Mediterranean fast-casual restaurant brand that focuses on serving healthful food and bold flavors to a growing customer base. As it expands its footprint among retail stocks in the dining space, the company operates roughly 459 locations across 26 states. It maintains a vertically integrated supply chain with over 50 grower and rancher partners, including single-source suppliers for ingredients such as olive oil.
In FY 2025, revenue reached nearly $1.2 billion, up approximately 22.4% from the prior year. This helped generate a net income of about $63.7 million, though the net margin contracted to roughly 5.4% from the previous year. The company relies on its own restaurants and third-party delivery platforms to drive these sales volumes.
As of its December 2025 balance sheet, the debt-to-equity ratio was roughly 0.6x, indicating the extent to which debt is used relative to shareholders’ equity. The current ratio stands at approximately 2.7x, indicating a strong ability to cover short-term financial obligations with current assets. Free cash flow for the period was nearly $26.1 million, which is the cash a business generates after paying for all its operations and equipment costs.
The case for Krispy KremeKrispy Kreme operates as a global doughnut and coffee brand with more than 14,000 fresh points of access across 35 countries. The company uses an omni-channel approach, selling through its own shops, digital delivery, and major retail partners like grocery and convenience stores. It relies on an exclusive distribution partnership with BakeMark USA for most of its ingredients and supplies in North America.
In FY 2025, revenue declined by about 8.6% to approximately $1.5 billion compared to the previous year. The company reported a significant net loss of nearly $515.8 million, resulting in a negative net margin of roughly 33.9%. This reflects the ongoing costs associated with its business model transition and strategic refranchising efforts.
As of its December 2025 balance sheet, the debt-to-equity ratio was approximately 2.2x, suggesting greater reliance on debt financing. The current ratio was nearly 0.4x, meaning current liabilities exceed current assets, and free cash flow was negative at approximately $64.0 million. Note that stock-based compensation accounted for roughly 37.9% of operating cash flow, thereby inflating reported cash generation, since SBC is a non-cash expense added back in the cash flow statement.
Risk profile comparisonCAVA faces significant risks from its supply chain concentration, as it relies on a limited number of suppliers for critical ingredients, which could lead to disruptions. The company must also execute perfectly on its growth plans, as opening new locations involves construction delays and the risk of cannibalizing sales from existing sites. Additionally, any food safety incident at its restaurants or through competitors like Chipotle Mexican Grill can damage consumer trust across the entire category.
Krispy Kreme is navigating risks associated with its high debt load and the execution of its complex turnaround plan. The company depends heavily on single-source suppliers for its proprietary glaze flavoring and equipment, creating a vulnerability if production fails. It also faces intense competition from larger players like McDonald's and Starbucks, while its shift to a franchised model reduces direct control over shop quality and safety standards.
Valuation comparisonKrispy Kreme offers a lower sales multiple, but CAVA is the only one of the two currently generating positive net income for its shareholders.
MetricCAVAKrispy KremeSector BenchmarkForward P/E140.0x61.4x28.6xP/S ratio7.7x0.4xn/aSector benchmark uses the SPDR XLY sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Choosing between Cava and Krispy Kreme is an exercise in finding stocks that match your investing strategy. While both companies offer interesting potential, they do so for very different reasons. Cava, for example, maintains a lofty valuation thanks to its strong sales growth (up 32% in Q1) and leadership in its unique, better-for-you fast-casual niche. On the other hand, Krispy Kreme is deeply discounted, but heavily indebted and in the midst of a major turnaround.
If you like a good contrarian investment, Krispy Kreme may be a better bet, provided its turnaround gains traction. If you prefer a growth stock, Cava is the hands-down winner. Personally, I think Cava is the far superior investment option. However, the stock still has plenty of growing to do to live up to its premium valuation. That said, Cava just opened 20 new locations in Q1, bringing its footprint to 459 stores, highlighting how heavily it is leaning into its growth plans.
Meanwhile, Krispy Kreme is continuing its refranchising strategy to become a more capital-light business. The company now expects to generate $15 million in free cash flow in 2026, but hasn’t generated meaningful, consistent profits or cash flow over the last five years. I’d personally rather give Krispy Kreme some time and see the turnaround take hold before buying.
Cava Group (CAVA - Free Report) closed the most recent trading day at $83.30, moving +1.29% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.01%. Meanwhile, the Dow experienced a rise of 0.14%, and the technology-dominated Nasdaq saw a decrease of 0.46%.
Coming into today, shares of the Mediterranean restaurant chain had gained 0.05% in the past month. In that same time, the Retail-Wholesale sector lost 5.64%, while the S&P 500 lost 1.4%.
The upcoming earnings release of Cava Group will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.17, reflecting a 6.25% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $353.73 million, up 26.06% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $0.55 per share and a revenue of $1.49 billion, demonstrating changes of +1.85% and +26.21%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Cava Group. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.08% higher. Cava Group is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Cava Group is currently being traded at a Forward P/E ratio of 150.9. This represents a premium compared to its industry average Forward P/E of 19.32.
It's also important to note that CAVA currently trades at a PEG ratio of 5.64. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 1.91.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 191, positioning it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
CAVA Group Inc (NYSE:CAVA) has pulled back since its early-June rally, though the shares are still up 33.3% year to date. The equity is also testing support at its 126-day moving average (representing roughly half a year of trading), a trendline with historically bullish implications.
According to Schaeffer's Senior Quantitative Analyst Rocky White, CAVA is trading within 0.75 times the 126-day moving average's 20-day average true range (ATR), after spending at least 80% of the previous two weeks and 80% of the prior 42 trading sessions above that trendline. This setup has appeared three times over the last decade, after which the stock was higher one month later 100% of the time, averaging a large 24.6% gain. A similar move from the stock's current perch at $78.26 would rise to $97.51.
Short covering could provide an added tailwind, as short interest represents 13.3% of the stock's available float. It would take shorts nearly five days to buy back their bearish bets, at CAVA's average pace of trading.
The options pits are pricing in relatively low volatility expectations, too, per CAVA's Schaeffer's Volatility Index (SVI) of 54%, which sits in the 17th percentile of its annual range. The stock's Schaeffer's Volatility Scorecard (SVS) of 88 out of 100 indicates it has consistently exceeded those expectations during the past year.
It has been about a month since the last earnings report for Cava Group (CAVA - Free Report) . Shares have added about 9.3% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Cava due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for CAVA Group, Inc. before we dive into how investors and analysts have reacted as of late.
CAVA's Q1 Earnings & Revenues Beat EstimatesCAVA delivered first-quarter fiscal 2026 earnings of $0.20 per share, down 9.1% from the year-ago quarter, but beat the Zacks Consensus Estimate of $0.17 by 17.65%. Total revenues rose 32.1% year over year to $0.44 billion and topped the consensus mark of $0.42 billion by 4.49%.
Results reflected a combination of unit growth and healthy demand trends. Same Restaurant Sales increased 9.7% in the quarter, including Guest Traffic growth of 6.8%, supporting a step-up in restaurant volumes.
CAVA Q1 Unit Growth Drives Restaurant Sales ExpansionOn the top line, CAVA revenues grew 32.2% year over year to $434.4 million, primarily reflecting contributions from 92 Net New CAVA Restaurant Openings during or subsequent to the first quarter of fiscal 2025. The company ended the quarter with 459 CAVA restaurants, up from 382 a year earlier.
Management also highlighted that new restaurant openings continue to exceed expectations in both top-line and margin performance, with first-quarter new restaurant productivity trending above 100%. That early performance can support continued reinvestment in new markets as the chain scales.
CAVA’s Q1 Restaurant-Level MarginCAVA’s restaurant-level profit margin was 25.1% in the first quarter, flat year over year, even as the business absorbed incremental wage investments and a higher mix of third-party delivery. The company said leverage from higher sales helped offset those pressures, keeping profitability at the restaurant level stable.
Cost structure details underscore that balance. Food, beverage and packaging costs were 29.1% of CAVA revenues, down 20 basis points versus the prior-year quarter, largely due to a favorable mix. Labor and related costs were 25.7% of revenues, approximately flat year over year, as sales leverage was offset by a 2% investment in team member wages, including the expansion of an Assistant General Manager role.
CAVA Generates Strong Cash Flow in Q1CAVA paired growth with improved cash generation. Net cash provided by operating activities was $64.1 million for the quarter, up from $38.6 million a year ago. Capital spending remained elevated as the company built out its footprint, with purchases of property and equipment of $48.6 million, resulting in free cash flow of $15.5 million.
Liquidity also remained ample. The company ended the quarter with $295.8 million of cash and cash equivalents and $107.2 million of investments, and it reported access to a $150 million revolving credit facility. Management said this base is expected to support near-term expansion and operating needs.
CAVA Raises FY26 OutlookReflecting first-quarter momentum, CAVA raised its full-year fiscal 2026 outlook. The company now expects 75-77 net new restaurant openings, compared with prior guidance of 74-76. Same Restaurant Sales growth is now expected to be 4.5%-6.5%, up from 3.0%-5.0% previously.
Profitability and investment assumptions moved as well. CAVA lifted its CAVA restaurant-level profit margin outlook to 23.7%-24.3% (from 23.7%-24.2%) and raised its pre-opening cost outlook to $22.0-$22.5 million (from $19.5-$20.0 million). Adjusted EBITDA is now expected to be $181-$191 million, up from $176-$184 million.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in fresh estimates.
The consensus estimate has shifted 7.71% due to these changes.
VGM ScoresCurrently, Cava has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a score of F on the value side, putting it in the bottom 20% quintile for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Cava has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerCava belongs to the Zacks Retail - Restaurants industry. Another stock from the same industry, Jack In The Box (JACK - Free Report) , has gained 11% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Jack In The Box reported revenues of $254.26 million in the last reported quarter, representing a year-over-year change of -24.5%. EPS of $0.76 for the same period compares with $1.20 a year ago.
Jack In The Box is expected to post earnings of $0.90 per share for the current quarter, representing a year-over-year change of -11.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.4%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Jack In The Box. Also, the stock has a VGM Score of B.
CAVA and Airbnb Experiences brings people together to celebrate summer's most memorable moments, kicking off with free pita chips for CAVA Rewards members nationwide
WASHINGTON--(BUSINESS WIRE)--At CAVA, summer starts around the table. And this year, CAVA is inviting fans to pull up a chair—literally.
CAVA’s Mediterranean Summer Supper Series is a three-part, summer-long celebration of food, hospitality, and community, bookable with Airbnb Experiences. Inspired by the Mediterranean tradition of gathering for a delicious meal, the series will transform some of the season's biggest moments into three unique dining experiences across the country designed to spark conversation, connection, and maybe even a few new group chats.
To kick things off, CAVA is inviting guests everywhere to join the celebration. On June 21, CAVA Rewards members nationwide can enjoy a free order of pita chips—including the new Sumac Sour Cream & Onion flavor—bringing a taste of the season to tables across the country.
The three Summer Supper Series installations include:
The Longest Table for the Longest Day: The Summer Supper Series begins on June 22 in Los Angeles, celebrating the summer solstice at CAVA’s longest ever table. Hosted in partnership with Outstanding in the Field, the event will honor the official start to summer with a family-style feast, seasonal flavors, and golden-hour views. The Winner’s Table: In July, the table will head east to New York City for a soccer-inspired supper at Rockefeller Center, just steps from the heart of the hype. Hosted by a special guest chef alongside a soccer star and created in partnership with Flavors of the Game, the gathering will celebrate one of the world's biggest sporting moments, bringing guests together over food, storytelling, and the universal language of soccer (or football, depending on who you ask). The Community Table: As a grand finale, in August, CAVA will hand over the party planning duties to its fans, bringing the supper series to one of the most requested cities that doesn’t yet have a CAVA. The winning location will host the season’s final table, bringing the spirit of Mediterranean hospitality to a brand-new community. Voting opens on July 1st on CAVA’s Instagram page. For fans who have been begging for CAVA to come to their area, this is their chance to enjoy a Mediterranean CAVA-inspired meal. "Across the Mediterranean, some of life's most meaningful moments happen around the table. It’s a lifestyle that prioritizes sharing food, connecting with loved ones, and slowing down to savor the moment. That way of life has inspired CAVA from the very beginning," said Nitya Madhavan, SVP of Brand Strategy & Marketing at CAVA. "This summer, we're creating new ways for people to come together, connect, and experience the Mediterranean way of life. Whether you're joining us at one of our supper experiences or stopping by your local CAVA, there’s a seat at the table for everyone."
Guests interested in pulling up a chair to any of these tables can learn more and reserve their seat through the Airbnb Experiences website. Tickets will be sold for $15, offering guests the opportunity to turn their daily lunch budget into a summer story worth telling. The table is set, and summer is just getting started. Guests can expect more surprises in the months ahead, and can stay in the loop all summer long @CAVA on Instagram and TikTok.
About CAVA
CAVA is the category-defining Mediterranean fast-casual restaurant brand, bringing together healthful food and bold, satisfying flavors at scale. Our brand and our opportunity transcend the Mediterranean category to compete in the large and growing limited-service restaurant sector as well as the health and wellness food category. CAVA serves guests across age groups, genders, and income brackets and benefits from generational tailwinds created by consumer demand for healthy living and a demographic shift towards greater ethnic diversity. We meet consumers’ desires to engage with convenient, authentic, purpose-driven brands that view food as a source of self-expression. The broad appeal of our food combined with these favorable industry trends drive our vast opportunity for continued growth.
About Outstanding in the Field
Founded by artist Jim Denevan in 1999, Outstanding in the Field is a roving restaurant without walls, setting its table at farms, vineyards, beaches, ranches, and other remarkable landscapes around the world. The experience was designed to reconnect diners with the land and the people who grow and produce their food, celebrating the craftsmanship of farmers, fishermen, ranchers, winemakers, and artisans through shared meals.
About Flavors of the Game
Flavors of the Game is a media and live experiences platform created by Mundial Partners, built on a simple idea: food and sport are two of the world's most beloved universal languages. The platform brings together professional athletes, sports legends, acclaimed chefs, and culinary tastemakers to create one of a kind experiences. Through immersive events, original content, and brand collaborations, Flavors of the Game explores the stories, traditions, and flavors that shape the global sports landscape.
In the latest close session, Cava Group (CAVA - Free Report) was up +1.28% at $89.18. The stock's change was more than the S&P 500's daily gain of 1.09%. On the other hand, the Dow registered a gain of 0.14%, and the technology-centric Nasdaq increased by 1.91%.
Coming into today, shares of the Mediterranean restaurant chain had gained 9.34% in the past month. In that same time, the Retail-Wholesale sector lost 5.56%, while the S&P 500 gained 0.29%.
The upcoming earnings release of Cava Group will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.17, reflecting a 6.25% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $353.73 million, up 26.06% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.55 per share and revenue of $1.49 billion, indicating changes of +1.85% and +26.21%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Cava Group. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.08% higher. Cava Group is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Cava Group has a Forward P/E ratio of 161.56 right now. Its industry sports an average Forward P/E of 19.07, so one might conclude that Cava Group is trading at a premium comparatively.
Also, we should mention that CAVA has a PEG ratio of 6.04. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Restaurants industry had an average PEG ratio of 1.9 as trading concluded yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 203, finds itself in the bottom 17% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Key Takeaways CAVA launched CavaCore and expanded CAVA Current to improve operations and decision-making.CAVA reported stronger loyalty engagement, helping increase visits, retention and repeat business.CAVA added new menu offerings, including Pomegranate-Glazed Salmon, attracting guests and driving traffic. CAVA Group, Inc. (CAVA - Free Report) is proving that growth in the restaurant industry is no longer driven solely by new store openings. The Mediterranean fast-casual chain is increasingly leveraging technology, customer engagement and product innovation to strengthen its business and drive sustainable expansion.
A key focus area is artificial intelligence and data infrastructure. During the first quarter of 2026, the company launched CavaCore, its modern data platform, and continued rolling out CAVA Current, a real-time operating system designed to improve decision-making across restaurants. Management believes these platforms will enable more personalized guest experiences, better demand forecasting, smarter labor scheduling and improved operational efficiency over time.
Loyalty is another powerful growth engine. CAVA reported encouraging results from its enhanced loyalty program, which has increased member engagement, visit frequency and customer retention. Digital campaigns, including its Flavor Bracket game and athlete partnerships, generated strong participation and helped deepen customer relationships. Management noted that loyalty members are increasingly moving up engagement tiers, supporting repeat business.
Innovation remains equally important. The return of the popular roasted white sweet potato drove guest frequency and attracted new customers, while the nationwide launch of Pomegranate-Glazed Salmon marked CAVA’s first seafood offering. Early customer response has been positive, reinforcing the company’s strategy of introducing exciting menu items without adding excessive operational complexity.
Combined with strong traffic growth, expanding brand awareness and disciplined execution, AI, loyalty and innovation appear to be key pillars supporting CAVA’s long-term growth strategy. As the company scales nationally, these initiatives could help it sustain customer demand while improving operational performance and profitability.
Can Rivals Match CAVA’s AI and Loyalty-Led Growth Strategy?Two notable competitors that are pursuing similar growth initiatives are Chipotle Mexican Grill (CMG - Free Report) and Sweetgreen (SG - Free Report) .
Chipotle has been investing heavily in digital innovation, loyalty programs and operational technology to drive customer engagement. Its rewards platform has grown into a major traffic driver, while digital ordering, Chipotlanes and AI-powered tools help improve efficiency and convenience. Like CAVA, Chipotle focuses on menu innovation without overcomplicating operations, using limited-time offerings to attract customers and boost frequency.
Sweetgreen is taking an even more technology-centric approach. The company has embraced automation through its Infinite Kitchen concept and uses data-driven personalization to enhance the customer experience. Its digital-first strategy, combined with a strong loyalty ecosystem, aims to increase repeat visits and improve restaurant-level economics. Sweetgreen also emphasizes menu innovation and health-focused offerings, targeting a consumer base similar to CAVA’s.
While both competitors have made significant progress, CAVA’s combination of Mediterranean cuisine, growing loyalty engagement, AI-enabled infrastructure and disciplined innovation strategy provides a differentiated platform that could help it continue gaining market share in the fast-casual dining space.
CAVA’s Price Performance, Valuation & EstimatesShares of CAVA have gained 53.7% in the past six months against the industry’s decline of 2.1%.
Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, CAVA trades at a forward price-to-sales ratio of 6.4X, above the industry’s average of 3.33X.
P/S (F12M)
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CAVA’s 2026 and 2027 earnings per share implies a year-over-year increase of 1.9% and 30.2%, respectively.
Image Source: Zacks Investment Research
CAVA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cava Group (CAVA 0.18%) has been one of the most satisfying stories in consumer investing this year. The Mediterranean fast-casual chain is up roughly 52% year to date, driven by real business momentum. In Q1 2026, the company grew revenue 32.2% and posted same-restaurant sales growth of 9.7%, nearly all of it from actual guest traffic rather than price increases. It launched its largest new menu in company history at the start of the year, adding white sweet potatoes back by popular demand and introducing glazed salmon -- its first-ever seafood protein -- in a new market expansion into St. Louis. It's hiring 2,500 new employees and opening 75 new restaurant locations in 2026 alone.
For investors who have been watching that run from the sidelines: The Cava story isn't over, but there are three consumer companies adjacent to that same tailwind -- health-forward, culturally connected brands with real operational momentum -- that haven't priced in as much optimism yet.
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1. Sweetgreen Sweetgreen (SG +4.16%) is building a restaurant chain and a kitchen technology company at the same time, and the market hasn't fully decided which one to value it as.
The Infinite Kitchen is Sweetgreen's fully automated assembly line -- a robotic system that prepares every salad and bowl to order, with no human involvement in the assembly process. It reduces labor costs by roughly a third per restaurant and eliminates the throughput bottleneck that has historically limited Sweetgreen's peak-hour capacity.
Image source: Getty Images.
In May 2026, Sweetgreen launched nationwide wraps, its biggest product expansion since opening, following strong test-market results, adding a new format designed to attract lunch customers who wanted something more portable. Sweetgreen's digital revenue now represents 67.2% of all transactions, which means it has a direct data line to its customers' ordering habits, preferences, and frequency in a way most restaurant brands spend years trying to build.
Q1 2026 revenue came in soft at $161.5 million, down slightly year over year, partly due to store closures during the Infinite Kitchen retrofitting process. That context matters because it looks like the company is temporarily reducing its production capacity to improve its long-term efficiency. Investors willing to hold through that transition are buying what Sweetgreen becomes, not what it currently looks like on a quarterly basis.
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2. First Watch Restaurant Group First Watch (FWRG +6.55%) has built a moat in a daypart that most restaurant chains abandoned: breakfast and brunch.
The restaurant only serves during daytime hours -- no dinner, no drive-thru, no late-night window. That focus creates something unusual in food service: a restaurant that closes at 2:30 p.m. yet still posts 17.3% year-over-year revenue growth in Q1 2026. Systemwide sales reached $367.6 million for the quarter, with 16 new restaurants opened across 11 states.
The thesis is simple but durable. As remote and hybrid work becomes permanent for a large portion of the workforce, the social breakfast-and-brunch occasion is growing. People who no longer commute every day are more likely to meet someone for a late-morning meal, and First Watch has positioned itself as the default destination for exactly that occasion.
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3. Dutch Bros Dutch Bros (BROS +0.65%) belongs on any list of consumer brands worth owning right now, and the reason isn't just the coffee.
In early 2026, Dutch Bros launched a CPG line -- canned iced coffees, ground beans, and creamer pods -- now available at Walmart and Amazon. That moves the brand from a regional drive-thru into a national household name, reaching millions of consumers in states where Dutch Bros hasn't built a single shop yet. The company is opening at least 181 new locations in 2026 and has a long-term footprint target that exceeds 7,000 stores -- roughly seven times its current size.
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What connects all three of these names to the Cava story is the same underlying consumer behavior: People are spending on food experiences they believe in, from brands that feel personal. Cava proved in 2026 that the market rewards that kind of loyalty at scale. Sweetgreen, First Watch, and Dutch Bros are all building the same kind of equity -- just earlier in the curve.
Cava Group (CAVA - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this Mediterranean restaurant chain have returned -3.4% over the past month versus the Zacks S&P 500 composite's -1.3% change. The Zacks Retail - Restaurants industry, to which Cava belongs, has lost 1.9% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Cava is expected to post earnings of $0.17 per share, indicating a change of +6.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.7% over the last 30 days.
The consensus earnings estimate of $0.55 for the current fiscal year indicates a year-over-year change of +1.9%. This estimate has changed +0.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $0.71 indicates a change of +30.2% from what Cava is expected to report a year ago. Over the past month, the estimate has changed +0.7%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Cava.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Cava, the consensus sales estimate of $353.73 million for the current quarter points to a year-over-year change of +26.1%. The $1.49 billion and $1.78 billion estimates for the current and next fiscal years indicate changes of +26.2% and +19.5%, respectively.
Last Reported Results and Surprise HistoryCava reported revenues of $438.27 million in the last reported quarter, representing a year-over-year change of +32.1%. EPS of $0.2 for the same period compares with $0.22 a year ago.
Compared to the Zacks Consensus Estimate of $419.46 million, the reported revenues represent a surprise of +4.49%. The EPS surprise was +17.65%.
Over the last four quarters, Cava surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Cava is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Cava. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Supporting his view, UBS analyst Dennis Geiger, on June 10, upgraded Cava Group from Neutral to Buy and raised the price target from $85 to $90.
As per the recent news, ImmunityBio, on June 1, presented data at the American Society of Clinical Oncology Annual Meeting about its Phase 3 studies in advanced non-small cell lung cancer.
Cramer said he likes Trulieve Cannabis Corp. (NYSE:TRLV), adding that it's a “terrific spec.”
Trulieve Cannabis became the first American marijuana company to list on a major U.S. stock exchange. Trulieve shares began trading on the NYSE under the symbol TRLV on June 10.
The Mad Money host recommended holding on to Ashland Inc. (NYSE ASH), adding that it could go higher.
Lending support to his choice, UBS analyst Joshua Spector, on June 10, maintained Ashland with a Buy rating and raised the price target from $66 to $72
Price Action:
CAVA shares fell 2.5% to settle at $87.30 on Tuesday. Immunitybio shares fell 5.8% to close at $6.72. Trulieve Cannabis shares dipped 4.7% to close at $9.40 on Tuesday. Ashland shares declined 1.3% to settle at $64.56. Photo via Shutterstock
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CAVA Group is a buy based on strong technical indicators despite poor valuation and profitability grades. Recent insider buying by C-suite executives and institutional accumulation reinforces the bullish outlook for CAVA. CAVA exhibits bullish price action, long-term momentum, and relative strength versus the S&P 500 since November 2025.
Cava Group (CAVA - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, CAVA broke out above the 50-day moving average, suggesting a short-term bullish trend.
The 50-day simple moving average, which is one of three major moving averages, is widely used by traders and analysts to establish support and resistance levels for a range of securities. Because it's the first sign of an up or down trend, the 50-day is considered to be more important.
CAVA has rallied 16% over the past four weeks, and the company is a Zacks Rank #3 (Hold) at the moment. This combination suggests CAVA could be on the verge of another move higher.
The bullish case solidifies once investors consider CAVA's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 8 higher, while the consensus estimate has increased too.
Investors should think about putting CAVA on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
Shares of Cava Group (CAVA +2.58%) rose after the Mediterranean-cuisine restaurant operator saw robust same-store sales growth and raised its full-year guidance. The stock is up nearly 40% year to date, but still down close to 10% over the past year.
Let's take a closer look at the company's latest results and prospects to see if now is the time to buy shares.
Image source: The Motley Fool.
Strong growth After a tough 2025, as its same-store sales growth slowed due to lapping the introduction of its hugely popular grilled steak option in 2024, Cava is back with a vengeance in 2026. Its comparable restaurant sales surged 9.7% in the first quarter, led by a 6.8% increase in traffic. Meanwhile, the company had a 1.4% price increase in January, saying it wasn't concerned with rivals' discounting. The same-store sales growth was a huge jump from the 0.5% increase it saw in Q4.
Overall revenue for the quarter surged 32% year over year to $434.4 million. It opened 20 new locations in the quarter, bringing its total to 459, a 20% increase versus a year ago.
The company continues to expand, with a focus on Midwestern markets. It slightly raised its outlook for new restaurant openings to 75-77, up from a prior estimate of 74-76 this fiscal year. Its goal is to have at least 1,000 restaurants by 2032.
Its restaurant-level margins came in at 25.1% in the quarter, unchanged from a year ago. Restaurant-level margins measure how profitable a chain's individual restaurants are before corporate costs. It expects a 2026 restaurant-level margin of between 23.7% and 24.3%.
On the profitability front, Cava's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) surged by 38% year over year to $61.7 million. The company also generated $64.1 million in operating cash flow for the quarter and $15.5 million in free cash flow.
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Is it time to buy the stock? There are a lot of things to like about Cava. It has strong restaurant-level margins and robust average unit volumes of $3 million. The company has shown in the past that its menu item innovations, such as grilled steak, can help ignite same-store sales growth, and it is just now introducing salmon, which could be its next big driver. Meanwhile, with 459 locations, it has a huge expansion runway in front of it.
That said, with a $9.5 billion market cap and 459 stores with $3 million in sales each, investors are paying around 7 times each store's average unit volume. No one would come close to paying $20.7 million for a single restaurant doing $750,000 in profits (and this is before any corporate overhead costs).
If the company can grow to 1,500 locations in the next decade and continue to increase average unit volumes to around $4 million, you can still make money on the stock long term. However, you're paying a huge multiple today and needing everything to go right. As such, I'd wouldn't chase the stock at this valuation.
Guzman y Gomez Mexican Kitchen, an Australian-born Chipotle rival that once planned to open hundreds of U.S. locations, has abruptly closed all of its American restaurants after six years in the Chicago area.
"All GYG USA restaurants permanently closed," a message on the company’s U.S. website says. "Effective from May 22nd, GYG USA restaurants will cease trading. Thank you for your support."
The chain also announced the move on Instagram, thanking customers and employees in Chicagoland, where all eight of its U.S. restaurants were located.
"After six years of burritos and big dreams in Chicagoland, we've made the difficult decision to close our US restaurants," the post read. "To every guest who came through our doors – you chose us, and we never took that for granted."
CAVA BUCKS RESTAURANT INDUSTRY TREND WITH SUCCESSFUL NO-DISCOUNT STRATEGY
A Guzman y Gomez restaurant in Sydney, Australia, on Wednesday, Feb. 18, 2026. (Brent Lewin/Bloomberg via Getty Images)
Guzman y Gomez's U.S. website shows just a message of its sudden closing Friday.
"To our team – thank you. Your passion and your purpose built something special. If you're ever in Australia, Singapore or Japan, come find us – we'll have your favs waiting for you. Chicagoland, Thank you!"
The shutdown marks a sharp reversal for Guzman y Gomez, which had recently reaffirmed its intent to expand in the U.S. market. The company (ASX: GYG) was founded in Australia by native New Yorkers Steven Marks and Robert Hazan and made its U.S. debut in 2020 with ambitions to build a much larger American footprint.
"I have always been confident in the differentiation of our food and guest experience, however this was not translating to an improvement in sales momentum," Marks said in an Australian Securities Exchange announcement, Business News Australia reported.
An employee prepares food at a Guzman y Gomez restaurant in Sydney, Australia, on Wednesday, Dec. 13, 2023. (Brent Lewin/Bloomberg via Getty Images)
"Having spent the last three months in the US, I realized this was going to take significantly more time and capital than we had expected.
"In assessing the trajectory of the current network, the board and I have concluded that the business is unlikely to deliver the performance that would justify continued investment of shareholder capital."
FMR FAST FOOD CEO PREDICTS MORE RESTAURANTS WILL CLOSE NATIONWIDE OVER HIGHER PRICES
Guzman y Gomez says adios to the U.S., but remains active in Australia, Japan and Singapore. (Guzman Y Gomez/Instagram)
The company chose the Chicago area as its entry point. At the time, its founders said they intended to open "hundreds, if not thousands" of Guzman y Gomez locations across the country.
Instead, the company is exiting the U.S. entirely, which has helped is stock price in Australia surge more than $3 Australian from $18.05 to $21.10 when the news dropped Friday morning.
"We have a long runway ahead of us in Australia as we progress towards our longterm target of 1,000 restaurants and segment underlying EBITDA as a percentage of network sales of 10%," Marks said.
"Concentrating our capital, focus and infrastructure behind this opportunity is the most effective way to compound shareholder value over the long term."
The retreat comes as U.S. restaurants face pressure from cautious consumers, higher food costs and declining traffic.
ITALIAN RESTAURANT CHAIN FILES FOR BANKRUPTCY, CITING INFLATION AND HIGHER INTEREST RATES
Guzman y Gomez (ASX: GYG), an Australian-based Chipotle rival in Chicago, is forced to close all its Chicago-area restaurants. (Brent Lewin/Bloomberg via Getty Images)
TheStreet reported that three in 10 Americans have cut back on retail spending and restaurant visits compared with a year earlier, citing S&P Global data. Food-away-from-home prices rose 39.3% from January 2019 to January 2026, far faster than in the previous seven-year period, according to the same report.
Those headwinds have weighed on chains across the industry, especially those trying to scale in crowded categories.
Guzman y Gomez positioned itself as a cleaner take on fast-casual Mexican food, touting no added preservatives, no artificial flavors, no added colors and no "unacceptable additives" on its Australian website.
Its U.S. closure leaves Chipotle — which has roughly 4,000 restaurants — without one of its smaller fast-casual Mexican challengers in the American market.
Ticker Security Last Change Change % CMG CHIPOTLE MEXICAN GRILL INC. 30.49 +0.07 +0.25% CAVA CAVA GROUP INC 83.62 +2.08 +2.56% QSR RESTAURANT BRANDS INTERNATIONAL INC. 73.39 +0.17 +0.23% GET FOX BUSINESS ON THE GO BY CLICKING HERE
RBC Capital Markets analyst Michael Toner told Reuters the exit could be positive for Guzman y Gomez’s broader business because its U.S. operations had limited prospects and were weighing on earnings.
"The U.S. business had very low prospects of being successful, and the losses of the business were weighing down the earnings of the group so the sooner exit than anticipated is positive," Toner said.
Cava Group (CAVA - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this Mediterranean restaurant chain have returned -9.8%, compared to the Zacks S&P 500 composite's +5.1% change. During this period, the Zacks Retail - Restaurants industry, which Cava falls in, has lost 1.1%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Cava is expected to post earnings of $0.17 per share, indicating a change of +6.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +9.3% over the last 30 days.
The consensus earnings estimate of $0.54 for the current fiscal year indicates no change from the prior year. This estimate has changed +5.3% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $0.71 indicates a change of +30% from what Cava is expected to report a year ago. Over the past month, the estimate has changed +3.3%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Cava.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Cava, the consensus sales estimate for the current quarter of $354.62 million indicates a year-over-year change of +26.4%. For the current and next fiscal years, $1.49 billion and $1.78 billion estimates indicate +26.3% and +19.6% changes, respectively.
Last Reported Results and Surprise HistoryCava reported revenues of $438.27 million in the last reported quarter, representing a year-over-year change of +32.1%. EPS of $0.2 for the same period compares with $0.22 a year ago.
Compared to the Zacks Consensus Estimate of $419.46 million, the reported revenues represent a surprise of +4.49%. The EPS surprise was +17.65%.
Over the last four quarters, Cava surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Cava is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Cava. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
CAVA Group shares are advancing steadily. Why is CAVA stock advancing? What Is Driving CAVA’s Stock Growth?The latest bid follows a strong first-quarter report and higher full-year same-store sales outlook, with management lifting that target to 7.8% from 6.1% while noting it isn't currently seeing a macro impact. Q1 revenue came in at $438.27 million versus $411.25 million expected, and adjusted EPS was 20 cents versus 17 cents expected.
CAVA's first-quarter operating leverage also stood out with adjusted EBITDA of $61.7 million versus $56.8 million expected, alongside total revenue growth of 32.2% year-over-year.
With the full-year framework, the company guided fiscal 2026 same-restaurant sales growth to 4.5% to 6.5% (up from 3% to 5%) and raised adjusted EBITDA to $181 million to $191 million (from $176 million to $184 million). CAVA also reiterated unit growth plans, targeting 75 to 77 new restaurant openings this year after opening 20 in the quarter to reach 459 locations.
Analysts also moved quickly to re-rate the setup, with Stifel lifting its target to $105 from $90 and Baird raising to $98 from $88, while Morgan Stanley nudged to $86 from $85 and Barclays moved to $74 from $70.
CAVA Stock: Key Levels To WatchFrom a trend perspective, CAVA is in a "reset" zone: it's trading 3.5% below its 20-day SMA ($82.03) and 6.9% below its 50-day SMA ($85.01), which can act as overhead supply if rallies fade quickly. At the same time, it's still 15.1% above its 200-day SMA ($68.78) and 1.3% above its 100-day SMA ($78.13), so the longer-term uptrend structure hasn't broken.
Momentum looks like it's trying to improve: MACD is above its signal line and the histogram is positive, which typically suggests downside pressure is easing versus the prior downswing. In plain terms, that signal-line crossover often shows buyers are gaining traction, even if price still needs to reclaim key moving averages to confirm a cleaner trend turn.
The March golden cross (50-day SMA above the 200-day SMA) remains a longer-term positive backdrop, but the shorter-term crossover is less friendly with the 20-day SMA below the 50-day SMA. That mix fits the recent "spring volatility" narrative—swing high in April, swing low in May—and suggests traders may keep treating rallies as tests until the stock can hold above the 50-day area.
Key Resistance: $90.50 — a nearby level where rebounds can stall, sitting above current price and near the zone traders often watch after prior spring pivots Key Support: $72.50 — a nearby level where buyers previously stepped in, aligning with a recent downside pivot zone and not far above the longer-term trend area What Is CAVA Group’s Business Model?Cava Group Inc owns and operates a chain of restaurants built around a Mediterranean-inspired fast-casual concept, and it also sells dips, spreads, and dressings that are centrally produced and distributed into grocery channels. Operationally, it reports two segments: CAVA (the restaurants) and CAVA Foods (the packaged and production side), with most revenue coming from the restaurant business.
That mix matters for Friday's move because the market is rewarding evidence of real demand (guest traffic growth) alongside a clear expansion plan. With 459 locations after opening 20 new restaurants in the quarter, and a plan to open 75 to 77 this year, execution on unit growth and same-store sales is the core driver investors are underwriting.
CAVA Group’s Benzinga Edge Scorecard BreakdownBelow is the Benzinga Edge scorecard for CAVA Group, highlighting its strengths and weaknesses compared to the broader market:
Momentum: Neutral (Score: 64.91) — The stock's recent tape is improving, but it's not in a clear momentum-leader posture versus the broader market. Value: Weak (Score: 11.32) — The market is pricing in a lot of growth, leaving less room for error if execution or demand cools. The Verdict: CAVA Group’s Benzinga Edge signal reveals a momentum-leaning setup paired with a clearly premium valuation profile. For longer-term bulls, the trade-off is straightforward: the chart can work if growth stays on track, but the low Value score implies pullbacks can get sharp when expectations wobble.
CAVA Stock Price Movement On FridayCAVA Stock Price Activity: Cava Group shares were up 0.14% at $78.32 at the time of publication on Friday, according to Benzinga Pro data.
Image: Courtesy of CAVA
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Key Takeaways CAVA posted 9.7% same-restaurant sales growth, driven by a 6.8% increase in guest traffic.CAVA grew revenues 32.2% to $434.4M and adjusted EBITDA 37.6% in first-quarter 2026.Chipotle and Sweetgreen face mixed demand trends as CAVA gains traction without heavy discounting. CAVA Group, Inc. (CAVA - Free Report) is proving that restaurant growth does not have to depend on heavy discounting. At a time when many restaurant operators are battling softer consumer spending and increasing promotional activity, CAVA continues to attract more customers through menu innovation, value and brand strength.
The company's first-quarter 2026 results highlighted this advantage. Same-restaurant sales increased 9.7%, supported by a robust 6.8% rise in guest traffic. Revenues surged 32.2% year over year to $434.4 million, while adjusted EBITDA climbed 37.6%. These results suggest that customer demand remains healthy even as the broader restaurant industry faces a more cautious spending environment.
Management attributed the performance to CAVA's differentiated Mediterranean offering, strong hospitality and disciplined pricing strategy. Unlike many peers that have turned to discounts to drive visits, CAVA has largely maintained its pricing structure. The company implemented only a modest price increase earlier this year while keeping base bowl and pita prices unchanged, reinforcing its value proposition for guests.
Innovation is also helping sustain momentum. The return of roasted white sweet potatoes generated strong customer engagement, while the recent launch of Pomegranate-Glazed Salmon expands the menu with a premium yet health-focused option. Meanwhile, loyalty initiatives and digital engagement programs are encouraging repeat visits and strengthening customer relationships.
Perhaps most notably, management stated that traffic strength has been consistent across regions, income levels and restaurant formats. That broad-based demand, combined with continued unit expansion and rising brand awareness, indicates that CAVA is gaining market share rather than simply benefiting from temporary factors. If these trends persist, CAVA may continue to distinguish itself as one of the restaurant industry's strongest growth stories.
How Do CAVA's Peers Compare on Traffic and Consumer Demand?While CAVA is posting strong traffic-led growth, competitors are facing a more mixed operating environment. Chipotle Mexican Grill (CMG - Free Report) remains one of the closest comparisons due to its customizable menu format and focus on fresh ingredients. However, Chipotle has recently encountered softer transaction trends as consumers become more selective with spending. The company continues to rely on menu innovation, loyalty programs and operational efficiency to drive visits, but its traffic growth has not matched CAVA's recent momentum.
Another relevant peer is Sweetgreen, Inc. (SG - Free Report) , which targets health-conscious consumers with a premium fast-casual offering. Sweetgreen has invested heavily in menu innovation, digital engagement and technology-driven operations. While these initiatives have supported brand awareness, Sweetgreen continues to navigate profitability challenges and uneven consumer demand in some markets.
Compared with both peers, CAVA's combination of strong traffic growth, moderate pricing, expanding brand awareness and broad customer appeal across income groups appears to be giving it a competitive edge. The company's ability to grow guest counts without aggressive discounting suggests that the Mediterranean-focused concept is resonating strongly with consumers and helping it capture market share in the fast-casual dining space.
CAVA’s Price Performance, Valuation & EstimatesShares of CAVA have gained 37.1% in the past six months against the industry’s decline of 2.6%.
Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, CAVA trades at a forward price-to-sales ratio of 5.4X, above the industry’s average of 3.23X.
P/S (F12M)
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CAVA’s 2026 and 2027 earnings per share implies a year-over-year increase of 1.9% and 30.2%, respectively.
Image Source: Zacks Investment Research
CAVA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Restaurant stock Cava Group Inc (NYSE:CAVA) was last seen down 1.8% at $73.33, on track for its fourth-straight daily loss. Shares have struggled to regain momentum since their April peak, logging losses in four of the last five weeks. Despite the recent pullback, CAVA remains up 24.2% in 2026, and a historically bullish signal suggests the stock could be setting up for a rebound by early July.
According to Schaeffer's Senior Quantitative Analyst Rocky White, CAVA is trading within 0.75 times the 126-day moving average's 20-day average true range (ATR), after spending at least 80% of the previous two weeks and 80% of the prior 42 trading sessions above that trendline. This setup has appeared just three times during the last decade. One month later, the stock was higher every time, averaging an impressive 24% gain. A comparable rally from current levels would place CAVA near $91.00.
An unwinding of pessimism could provide further tailwinds. CAVA's Schaeffer's put/call open interest ratio (SOIR) of 1.52 sits higher than 99% of readings from the past 12 months, indicating short-term options traders are unusually put-heavy. Short interest is elevated as well. The 13.44 million shares sold short account for 12.24% of CAVA's available float, representing more than four days' worth of pent-up buying power at the stock's average daily trading pace.
Options traders are pricing in relatively low volatility, per CAVA's Schaeffer's Volatility Index (SVI) of 55%, which ranks in the 18th percentile of its annual range. The stock has tended to exceed these expectations over the past year, per its Schaeffer's Volatility Scorecard (SVS) of 90 out of 100.
WASHINGTON--(BUSINESS WIRE)--CAVA, (NYSE: CAVA) the category-defining Mediterranean fast-casual restaurant brand, today released its 2025 Impact Update, detailing the company's continued commitment to people development, community support, culinary innovation, and sustainable growth. The report reflects a milestone year for the company, surpassing $1 billion in revenue for the first time in 2025 while opening 72 net new restaurants across the country. Alongside this expansion, CAVA donated more.
Key Takeaways CAVA posted 9.7% same-restaurant sales growth in Q1 FY26, powered by 6.8% guest traffic gains.Digital revenue mix hit 39.9% as pickup, delivery and a separate make line support throughput and access.CAVA opened 20 net new restaurants to 459; FY26 openings raised to 75-77. CAVA Group (CAVA - Free Report) is leaning into a straightforward growth playbook: drive more visits, broaden access through digital, and keep opening restaurants at a steady pace. First-quarter fiscal 2026 results showed that the approach is working, with demand led by traffic and supported by measured pricing.
CAVA also raised its full-year fiscal 2026 outlook across key metrics, pointing to confidence in underlying demand and unit economics even as management builds in moderation later in the year.
CAVA Leads With Traffic, Not PriceIn first-quarter fiscal 2026, same-restaurant sales increased 9.7%, driven primarily by 6.8% guest traffic growth. The remaining 2.9% came from menu price and product mix, underscoring that visits, not pricing, did the heavy lifting.
Management characterized its pricing posture as measured. The company cited an approximately 1.4% price increase in January while keeping base bowl and pita pricing flat. That positioning can protect frequency by keeping core entry points stable, while allowing check growth to come through mix and innovation over time.
CAVA Group’s Menu Innovation Keeps Visits RisingMenu news remains a central lever for sustaining engagement. During the quarter, CAVA brought back roasted white sweet potato as a seasonal item and highlighted strong feedback alongside higher visit frequency, including from guests new to the brand.
CAVA also launched its first seafood offering, Pomegranate-Glazed Salmon, across all restaurants nationwide. The company positioned the item as a natural extension of its Mediterranean menu, expanding choice without drifting from the concept.
The broader message is that innovation is being used to lift traffic and support check growth without relying on broad discounting. That can be particularly valuable in a competitive environment where peers may lean into promotions. Chipotle Mexican Grill, Inc. (CMG - Free Report) and Sweetgreen, Inc. (SG - Free Report) have also used menu updates and convenience-focused ordering to keep customers engaged, making consistent innovation a key competitive battleground in fast casual.
CAVA’s Digital Mix Deepens Access and LoyaltyDigital continues to be a meaningful share of the business. Digital revenue mix was 39.9% in first-quarter 2026, reinforcing that a large portion of demand already comes through digital channels.
Management also pointed to digital-led engagement initiatives aimed at deepening relationships with guests as the restaurant base grows. Over time, a scaled digital channel can support convenience, throughput, and more consistent access across dayparts and occasions.
That matters because digital ordering and third-party delivery expand how guests interact with the brand. CAVA has also designed restaurants with multiple access points, including digital pick-up, and includes a separate digital make line intended to maximize throughput. As digital engagement rises, the model is set up to serve those orders without forcing trade-offs in in-restaurant execution.
CAVA Group Builds Scale With New Restaurant MomentumUnit growth is a core engine of the story. CAVA opened 20 net new restaurants in first-quarter fiscal 2026 and ended the quarter with 459 locations, up 20.2% year over year.
Management raised fiscal 2026 net new opening guidance to 75-77, keeping the development plan moving forward while the footprint expands into newer markets. A sustained opening cadence supports multi-year revenue growth even if same-restaurant sales moderate as comparisons tighten.
The company also noted that new restaurant productivity in the first quarter trended above 100%, with openings exceeding expectations on both top-line and margin performance. Early strength like that can reinforce reinvestment as the chain scales across existing and new markets.
CAVA’s Unit Economics Fund the FlywheelCAVA’s store-level profitability provides the capacity to keep investing. In first-quarter fiscal 2026, the company generated $108.9 million of restaurant-level profit on $434.4 million of CAVA revenues.
Profitability held steady even as higher costs tied to a greater mix of third-party delivery and incremental wage investments were absorbed, with leverage from higher sales helping offset pressures. Average unit volume increased to $3.0 million versus $2.9 million in the prior-year quarter, supporting continued unit development as the base expands.
Looking ahead, management’s fiscal 2026 restaurant-level profit margin outlook of 23.7%-24.3% reflects ongoing investment in the operating model while sustaining store-level profitability as the footprint scales.
CAVA Group’s 2026 Outlook Signals Demand ConfidenceManagement raised full-year fiscal 2026 guidance to 4.5%-6.5% same-restaurant sales growth and $181-$191 million of Adjusted EBITDA. It also reiterated that second-quarter trends are tracking in line with the first quarter and above the revised full-year range, while still embedding moderation later in the year.
That setup frames a constructive near-term trajectory driven by traffic-led demand, disciplined unit growth, and sustained digital engagement. For investors who follow Zacks’ signals, CAVA currently carries a Zacks Rank #3 (Hold).
CAVA’s Key Risks to Watch From HereSeveral swing factors could pressure margins or damp demand. Management expects an estimated 100 basis-point margin-rate drag from the national salmon rollout beginning in the second quarter, creating a mix headwind even as the offering broadens the menu.
The company also flagged elevated energy costs, including a 20-40 basis-point buffer, which can weigh on restaurant-level leverage. Finally, macroeconomic and geopolitical uncertainty remains an overhang, especially in a highly competitive restaurant landscape where discounting could intensify.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways CAVA trades at 5.15x forward sales vs 3.2x sub-industry; below its 2-year median 7.5x.CAVA Q1 EPS $0.20 on $0.44B revenue; FY26 comps raised to 4.5%-6.5% and EBITDA to $181-$191M.CAVA flags ~100 bp margin drag from salmon rollout, plus 20-40 bp energy buffer; no 2026 price hikes planned. CAVA Group (CAVA - Free Report) is putting up strong, traffic-led results while expanding its footprint at a brisk pace. That combination often earns premium valuation in restaurants, and CAVA is no exception.
The setup now comes down to whether the operating momentum and raised fiscal 2026 outlook can offset the margin headwinds management is already flagging. At roughly 5x sales, execution matters.
CAVA Trades Rich Versus the Sub-IndustryCAVA is currently trading at 5.15x forward 12-month sales, versus 3.2x for the Zacks sub-industry. The premium signals that investors are paying up for a growth profile that blends traffic momentum with unit expansion and solid store-level economics.
It also helps to frame where today’s multiple sits within CAVA’s own history. Over the past two years, the stock has traded as high as 15.11x sales and as low as 3.63x, with a two-year median of 7.5x. Today’s level is below that median, but still above the broader peer set, which leaves valuation sensitive to any change in demand or margin expectations.
CAVA Group’s Price Target and What It ImpliesCAVA’s shares carry a $75 price target that reflects 5.41x forward 12-month sales. The math behind that target is effectively a bet that CAVA can keep building scale without losing the attributes that are driving demand and profitability today.
What has to go right is fairly clear based on recent performance. Demand needs to remain healthy, new restaurants need to continue to open on plan, and restaurant-level profitability needs to stay resilient even as the company invests in the operating model. Management’s decision to raise fiscal 2026 guidance across same-restaurant sales, net new openings and Adjusted EBITDA reinforces that confidence, but the margin bridge still has real moving parts.
CAVA’s Hold Rating and Style Score SnapshotCAVA currently has a Zacks Rank #3 (Hold). That rating aligns with a view that near-term performance may track more in line with the broader market rather than signaling a clear short-horizon advantage.
The Style Scores show why the stock can screen well for some factors but not others. CAVA has a VGM Score of B, with Value at F, Growth at A and Momentum at A. In plain terms, the factor posture leans toward growth and momentum rather than valuation support, which fits a stock trading at a premium to the sub-industry.
CAVA Group’s Beat-and-Raise Quarter in ContextCAVA delivered first-quarter fiscal 2026 earnings of $0.20 per share, down 9.1% year over year but ahead of the Zacks Consensus Estimate of $0.17. Total revenues rose 32.1% to $0.44 billion, topping the consensus mark of $0.42 billion.
The demand engine behind the beat is also important. Same-restaurant sales increased 9.7% in the quarter, including guest traffic growth of 6.8%. Those fundamentals supported management’s decision to raise fiscal 2026 guidance for same-restaurant sales growth to 4.5%-6.5% and Adjusted EBITDA to $181-$191 million.
CAVA’s Margin Bridge: What Helped, What HurtCAVA’s restaurant-level profit margin was 25.1% in the first quarter, flat year over year, even as the company absorbed incremental wage investments and a higher mix of third-party delivery. Management noted that leverage from higher sales helped offset those pressures, keeping store-level profitability stable.
On the cost lines, food, beverage and packaging were 29.1% of CAVA revenues, down 20 basis points versus the prior-year quarter, largely due to favorable mix. Labor and related costs were 25.7% of revenues, approximately flat year over year, as sales leverage was offset by a 2% wage investment, including expansion of the Assistant General Manager role.
The trade-off is that a higher mix of third-party delivery can lift operating expense rates and reduce incremental margin flow-through, even if it supports demand. That balance will matter more as CAVA’s digital channels continue to scale.
CAVA Group’s 2026 Headwinds That Can Reprice the StockManagement expects incremental cost pressures, including a 20-40 basis-point buffer for elevated energy costs. It also expects an approximate 100 basis-point margin-rate drag tied to the national salmon rollout beginning in the second quarter of fiscal 2026.
Just as important, management reiterated it does not plan to take additional price increases in 2026 beyond the January menu adjustment. That value stance can support traffic, but it raises the bar for absorbing inflation through mix, labor productivity and operating discipline.
CAVA’s Balance Sheet and Cash Flow FlexibilityCAVA generated net cash provided by operating activities of $64.1 million in the first quarter. Capital spending remained elevated, with purchases of property and equipment of $48.6 million, resulting in free cash flow of $15.5 million.
Liquidity also remains ample, with $295.8 million of cash and cash equivalents and $107.2 million of investments, plus access to a $150 million revolving credit facility. That flexibility supports near-term expansion, which is central to the growth thesis.
In the broader restaurant peer set, Chipotle Mexican Grill, Inc. (CMG - Free Report) carries a Zacks Rank #3 (Hold), while Shake Shack, Inc. (SHAK - Free Report) has a Zacks Rank #4 (Sell). For CAVA, sustaining premium valuation will likely require continued demand strength alongside disciplined cost absorption as those fiscal 2026 headwinds move through the income statement.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways CAVA launched CavaCore in 2026 and CAVA Current to unify data and speed store-level actions.CAVA's digital mix hit 39.9% in Q1; Digital Kitchens add delivery and catering capacity in select markets.CAVA Q1 FY26 comps rose 9.7% on 6.8% traffic; delivery mix and salmon rollout are set to weigh on margins. CAVA Group (CAVA - Free Report) has been leaning on strong traffic momentum, disciplined pricing and broad consumer appeal across income cohorts. Digital ordering and third-party delivery are supporting guest frequency, while menu innovation is keeping engagement high. New restaurants are also performing strongly across markets, reinforcing the long-term unit-growth opportunity.
For investors, the setup now hinges on whether CAVA can keep execution tight as it scales. The company carries a Zacks Rank #3 (Hold) at present, and its operating technology initiatives look increasingly tied to protecting consistency while the footprint expands.
CAVA’s CavaCore Sets Up Data at ScaleCAVA launched CavaCore earlier in 2026 as a modern data platform intended to create a unified, scalable foundation for how it manages and uses data. The stated objective is to enable faster execution across the business as it grows.
Management also positioned CavaCore as an infrastructure that can help the company leverage emerging artificial intelligence capabilities over time. The key point is structural. A single, scalable data layer can reduce friction when CAVA wants to standardize processes and accelerate decisions across hundreds of restaurants.
CAVA Group’s CAVA Current Aims for Faster Store ActionsCAVA Current is live and processing orders, with the platform designed to improve visibility. That visibility is meant to support faster, more localized actions across restaurants as the chain scales.
As unit count climbs across existing and new markets, the operating burden shifts from opening restaurants to running them consistently. Systems that translate demand signals into clearer store-level actions can help sustain service speed and decision-making discipline as the footprint becomes more complex.
CAVA’s Digital Kitchens Expand Off-Premise CapacityCAVA restaurants are designed to support multiple access points, including walk-the-line ordering and digital pick-up, and each location includes a separate digital make line to maximize throughput. In select markets, the company also operates Digital Kitchens to support third-party marketplace and native delivery, digital pick-up and centralized catering production.
Digital is already a meaningful part of the business. Digital revenue mix was 39.9% in the first quarter of fiscal 2026, showing that a large share of demand is transacting through digital channels. As off-premise expands, Digital Kitchens can act as a pressure valve, adding capacity for delivery and catering without forcing every restaurant to absorb the same operational complexity.
CAVA Group’s Supply Chain Is Built for 750 StoresCAVA has invested in vertically integrated manufacturing and a directly sourced supply chain with more than 50 grower, rancher and producer partners. This structure supports the restaurant system and the consumer packaged goods business, which sits within CAVA Foods.
The production footprint includes a 30,000-square-foot facility in Laurel, MD, a 55,000-square-foot facility in Verona, VA, and a 4,000-square-foot distribution facility in Edison, NJ, used primarily for consumer packaged goods distribution in the Northeast. The company has also signed a lease to expand the Laurel facility by an additional 20,000 square feet.
Management expects its production facilities to support at least 750 restaurants plus the consumer packaged goods business, with additional capacity development planned over time. That capacity signal matters because it indicates the supply chain is being built to stay ahead of unit growth rather than reacting after constraints appear.
CAVA’s Growth Loop: Tech, Throughput and New UnitsUnit expansion remains a core growth engine. CAVA opened 20 net new restaurants in the first quarter of fiscal 2026 and ended the quarter with 459 restaurants, up 20.2% year over year. Management raised full-year fiscal 2026 net new opening guidance to 75-77, keeping development moving forward as the footprint pushes into newer markets.
The operating model is also producing a profit base that can fund reinvestment. In the first quarter, CAVA generated $108.9 million of restaurant-level profit on $434.4 million of revenues, while average unit volume increased to $3.0 million from $2.9 million in the prior-year quarter. Over time, management’s technology investments are intended to help maintain consistent execution as those volumes and unit counts climb.
CAVA Group’s Trade-Offs as Digital and Delivery RiseScaling digital and delivery is not free. In the first quarter of fiscal 2026, other operating expenses rose to 13.3% of revenues, up 80 basis points year over year, primarily due to a higher mix of third-party delivery. Even if digital channels are managed for dollar contribution, a higher delivery mix can lift operating expense rates and reduce incremental margin flow-through as the store base expands.
CAVA is also absorbing incremental cost headwinds. Management expects a 20-40 basis point buffer for elevated energy costs and an expected 100 basis point margin-rate drag from the national salmon rollout beginning in the fiscal second quarter. With no additional price increases planned in 2026 beyond the January adjustment, the cost discipline around channel mix becomes more important.
CAVA: What to Track Next Quarter?First, watch whether comps remain traffic-led. In the first quarter of fiscal 2026, same-restaurant sales increased 9.7%, with 6.8% driven by guest traffic and 2.9% tied to menu price and product mix. Sustained traffic momentum would reinforce the durability of demand as comparisons tighten.
Second, track delivery mix and the expense line tied to it. The company has already flagged how third-party delivery can pressure operating expense rates and reduce incremental margin flow-through, so investors should monitor whether that dynamic accelerates as digital grows.
Third, follow how the salmon rollout flows through margins as it ramps. Management highlighted a margin-rate drag beginning in the second quarter, making mix and cost absorption key swing factors. For context, peers such as Chipotle Mexican Grill, Inc. (CMG - Free Report) and Sweetgreen, Inc. (SG - Free Report) also carry a Zacks Rank #3 each, underscoring how execution and cost control can separate operators even in a competitive restaurant environment.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cava CEO Brett Schulman sits down with Yahoo Finance Executive Editor Brian Sozzi and reveals how CAVA leverages AI camera tech and a viral "Love Button" to ensure generous portion sizes that directly challenge their competitors. Timestamps 00:00 Inside Cava 00:58 From 1 to 460 locations 02:20 The origins of Cava 04:15 Leaving Wall Street 05:25 Near-death business moments 07:00 The Zoës Kitchen acquisition 07:55 Lessons from Ron Shaich 09:20 Scaling to 1,000 locations 10:00 Betting on yourself 12:15 Advice for entrepreneurs 13:20 Scaling the Cava model 15:00 Reinventing the restaurant 18:35 Technology and hospitality 20:22 The Cava "Love Button" 23:00 Building food at scale 27:40 GLP-1s and dining habits 29:45 Life as a public CEO #entrepreneurship #fastcasual #businessgrowth #powerplayers #yahoofinance == AlphaSpace by Yahoo Finance: A Professional-Grade Investment Platform Built for Everyday Investors.
New “Flavor Your Future” Platform expands career opportunities by investing in internal growth, leadership development, and community job creation
WASHINGTON--(BUSINESS WIRE)--CAVA (NYSE: CAVA), today announced a significant expansion of its workforce and career development initiatives as part of its ongoing commitment to build meaningful, long-term careers in Mediterranean hospitality through its new Flavor Your Future platform.
CAVA is doubling down on creating clear pathways for growth, investing in leadership development, and expanding opportunities for team members across the country. In 2026, the company plans to hire more than 2,500 new team members while expecting to open over 75 new restaurants, bringing purposeful job opportunities to the communities it serves.
"The most rewarding part of our growth is seeing our team members grow alongside the company," said Kelly Costanza, Chief People Officer at CAVA. “Whether someone is stepping into a leadership role or just getting started, we want CAVA to be a place where they can build a future they're proud of."
New Roles Designed for Growth
A key milestone within the “Flavor Your Future” platform is the recent launch of CAVA’s new Assistant General Manager (AGM) role, designed to build a deeper bench of role-ready leaders to support the company’s rapid growth. The company set out to fill more than 150 AGM roles this year and has already surpassed this goal. This added layer of leadership will strengthen day-to-day operations, accelerate the development of future leaders, and help build more sustainable restaurant teams over time.
Investing in Growth from Within
CAVA continues to prioritize internal mobility and leadership development:
3,500+ restaurant team members celebrated advancements and promotions in 2025. 60% of Assistant General Managers (AGMs) have been promoted from within since the role launched in December 2025. CAVA is expanding how it recognizes and rewards its leaders through new performance and equity-based incentives. In addition, all General Managers are now eligible for long-term incentive (LTI) equity grants, giving them a direct stake in the company’s success, while additional incentives tied to GM hiring and promotion performance further align leadership growth with overall business impact.
“We’re in an exciting season of growth at CAVA as we continue expanding our Mediterranean way to more guests and communities across the country,” said Doug Thompson, Chief Operating Officer at CAVA. “Our company's growth is only possible with our team members' growth. Through meaningful opportunities to develop, lead and build lasting careers, investing in our people isn’t separate from our success -- it’s what drives it.”
Benefits That Go Beyond the Workplace
From the very beginning, CAVA has been about more than just great food and a warm, welcoming experience. Founded by entrepreneurs who grew up around restaurants and experienced firsthand both the opportunities and challenges of the industry, CAVA was built on the belief that taking care of team members is just as important as taking care of guests. Whether watching their parents navigate restaurant work, working in restaurants themselves to help pay for college, or earning money to open the first CAVA Mezze restaurant, our founders saw the impact that strong support, opportunity, and care can have on people’s lives. Those early experiences continue to shape CAVA’s people-first culture and commitment to creating real opportunities for growth across the organization, and benefits offered that center on investing in the whole person:
Healthcare coverage, including medical, dental, vision, and telemedicine for eligible team members Financial wellbeing support through bonus opportunities, a 401(k) plan after 60 days of service with company match after a year of service, employee stock purchase plan, and early wage access Education support, including tuition discounts for undergraduate and graduate programs Family-focused benefits such as paid parental and bereavement leave, employee assistance programs, and legal and identity protection services Wellness offerings that include mental health support for all employees and their families Everyday perks like commuter benefits, pet insurance, and free or discounted meals during shifts New Multichannel Storytelling Series
As part of the initiative, CAVA is launching a new Flavor Your Future marketing effort featuring real stories from team members across the organization, showcasing the many ways careers can grow and evolve at CAVA. The campaign will come to life across social, digital, and owned channels throughout the year. To learn more, and stay up to date on CAVA’s open positions, please visit cava.com/careers and follow @CAVA on social channels, including TikTok, Instagram, LinkedIn, and Facebook.
About CAVA
CAVA is the category-defining Mediterranean fast-casual restaurant brand, bringing together healthful food and bold, satisfying flavors at scale. Our brand and our opportunity transcend the Mediterranean category to compete in the large and growing limited-service restaurant sector as well as the health and wellness food category. CAVA serves guests across age groups, genders, and income brackets and benefits from generational tailwinds created by consumer demand for healthy living and a demographic shift towards greater ethnic diversity. We meet consumers’ desires to engage with convenient, authentic, purpose-driven brands that view food as a source of self-expression. The broad appeal of our food combined with these favorable industry trends drive our vast opportunity for continued growth.
Pre-Market Stock Futures: Futures are trading lower after the stock market tried to take a cue from Monday’s action, and things didn’t work out quite as well on Tuesday. Once again, the market gapped open higher as the “Buy the dip” legions came in to ride what they thought would be another wave higher, only to once again see the gains reversed. This time, Monday’s pattern repeated, but the damage was greater: two of the four major indices closed lower, with the Dow Jones Industrial Average, which was the only index to close lower on Monday, finishing the session higher at 50,871, up 0.17%. The small-cap-heavy Russell 2000 closed the day at 2,864, up 0.32%. The Nasdaq finished the day down 0.97% at 25,678, while the S&P 500 was last seen down 0.26% at 7,386.
Treasury Bonds: Yields were down across the Treasury curve, as every time the long end gets over the 5% levels, and the 10-year trades above 4.50%, the buyers return. Part of this is a yield play, but another big factor is adding some insurance, and many see an inevitable big decline coming our way. Either way, when the dust settled on Tuesday, the 30-year-long bond closed the day at 5.01%, while the benchmark 10-year note was last seen at 4.53%. Today’s report on the Consumer Price Index for May and Thursday’s Producer Price Index print could shape how the bond market trades for the rest of the second quarter.
Oil and Gas: Oil prices were down across the board on Tuesday, as hopes for an end to the war with Iran surged on positive comments from the president, plus reports indicating that traffic in the Strait of Hormuz has increased, all of which added to the selling pressure, which Americans are cheering as the busy summer driving season is underway. Brent Crude closed the day at $91.65, down 2.75%, while West Texas Intermediate was last seen at $88.51, down 3.06%. The final trade for Natural Gas was reported at $3.14, down 3.o2%.
Gold: The precious metals had a tough day, as trading remained range-bound for both Gold and Silver. This comes as Paul Wong, Sprott’s market strategist, reminded investors that rising debt and inflation will remain the wind in the sails of the precious metals complex, which, as we have noted, has traded range-bound since late February. Gold closed Tuesday’s session at $4,259, down 1.61%, while the last trade for Silver was reported at $65.21, down a whopping 4.08%.
Crypto: Cryptocurrency markets declined on Tuesday, with Bitcoin trading near $62,500 after posting a roughly 1% loss over the past 24 hours. The broader digital asset market stayed under selling pressure as investors digested ongoing ETF outflows. Mid-week trading showed disappointing momentum, with crypto largely decoupling from a global rally in risk assets, which has run into a wall over the last two days. Although geopolitical tensions appeared to ease, concerns lingered about the prolonged streak of outflows from U.S. spot Bitcoin ETFs. At 8 AM EDT, Bitcoin traded at $62,030, while Ethereum traded at $1,659.
24/7 Wall St. reviews dozens of analyst research reports daily to identify new investment ideas for both investors and traders. Some of these daily analyst calls cover stocks to buy. Other calls cover stocks to sell or avoid. Remember that no single analyst call should ever be used as a basis to buy or sell a stock.
Here are some of the top Wall Street analyst upgrades, downgrades, and initiations seen on Wednesday, June 10, 2026.
Upgrades:
Cava Group (NYSE: CAVA | CAVA Price Prediction) was upgraded to Buy from Neutral at UBS, which bumped the target price for the stock to $90 from $85. Entergy (NYSE: ETR) was upgraded to Outperform from In Line at Evercore ISI, which raised the target price for the utility giant to $121 from $115. GlobalFoundries (NASDAQ: GFS) was upgraded to Buy from Neutral at Arete, without a target price. Pfizer (NYSE: PFE) was upgraded to Sector Perform from Underperform at RBC Capital, with a $25 target price. STMicroelectronics (NYSE: STM) was raised to Buy from Neutral at Bank of America, which raised the target price for the shares to $100 from $83. Downgrades:
BILL Holdings (NYSE: BILL) was cut to Hold from Buy at Truist, which dropped the target price for the stock to $35 from $45 Hess Midstream (NYSE: HESM) was cut to Underweight from Equal Weight at Morgan Stanley, which has a $38 target price. Nike (NYSE: NKE) was downgraded to Sector Perform from Outperform at RBC Capital, which cut the target price for the sports apparel and shoe giant to $50 from $70. Nuvalent (NASDAQ: NUVL) was downgraded to Hold from Buy at TD Cowen, which dropped the target price for the share to $124 from $140. Taylor Morrison (NYSE: TMHC) was downgraded to Peer Perform from Outperform at Wolfe Research, with a $72.50 target price. That is the amount Berkshire Hathaway is paying to acquire the company. Initiations: 3M Company (NYSE: MMM) was initiated with an Underperform rating at Bernstein, with a $131 target price. Honeywell International (NYSE: HON) was started with a Market Perform rating at Berstein, with a $233 target price. Power Integrations (NASDAQ: POWI) was started with a Buy rating at Needham, with a $90 target price objective. SharkNinja (NYSE: SN) was initiated with an Overweight rating at Piper Sandler, with a $150 target price. Vertiv Holdings (NYSE: VRT) was started with an Outperform rating at Bernstein, and has a $416 target price for the stock.
CAVA Group Inc (NYSE:CAVA) is up 2.2% at $77.99 in premarket trading, after UBS upgraded the Mediterranean restaurant chain to "buy" from "neutral" and lifted its price target to $90 from $85. The brokerage pointed to strong sales trends, accelerating unit growth, and an attractive risk/reward setup following the stock's recent pullback.
The upgrade arrives as CAVA attempts to build on its recent rebound. Shares are up nearly 30% in 2026, though they remain well below their April 21 annual high of $98.79. The equity has added more than 5% over the last week, and today's premarket move has it eyeing a fifth-straight gain.
Analyst sentiment leans bullish heading into today. Of the 30 brokerages in coverage, 18 carry a "buy" or better rating, while 12 sport a "hold" or worse.
Options traders have leaned bearish toward CAVA stock. The security's Schaeffer's put/call open interest ratio (SOIR) of 1.52 ranks higher than 98% of readings from the past year, showing short-term options traders are more put-heavy than usual. Meanwhile, short interest accounts for 12.2% of the stock's available float, leaving plenty of room for short-covering activity should the shares continue higher.
The options pits are pricing in relatively low volatility expectations, too, per CAVA's Schaeffer's Volatility Index (SVI) of 57%, which sits in the 22nd percentile of its annual range. The stock's Schaeffer's Volatility Scorecard (SVS) of 93 out of 100 indicates it has consistently exceeded those expectations during the past year.
CAVA Group (NYSE:CAVA) shares were upgraded to Buy by UBS, which cited the Mediterranean fast-casual chain's same-store sales resilience, unit expansion potential, and an improved risk/reward following a pullback in shares since April.
"CAVA remains a compelling growth story, which is increasingly scarce in the sector in the current environment," UBS analysts wrote, pointing to differentiated menu offerings, multiple sales catalysts, and healthy new unit returns as key supports for a premium valuation.
UBS models upside to CAVA's 2026 same-store sales guidance of 4.5% to 6.5%, with traffic-driven momentum holding up despite a difficult macro backdrop. The firm sees potential upside to consensus estimates of approximately 7% same-store sales growth in 2026 and roughly 4% annually from 2027 through 2029.
Drivers include CAVA's appeal to health-conscious consumers, a pipeline of menu innovation and limited-time offerings, marketing investments to build brand awareness, digital and loyalty program contributions, and operational improvements tied to technology initiatives, labor investments, and the Project Soul new restaurant design rollout. UBS Evidence Lab data was cited as supporting the sustainability of same-store sales momentum at or above the company's long-term growth algorithm.
The new $90 target implies roughly 38x next-twelve-months EBITDA, up from the prior 36x multiple, reflecting UBS's expectation of 20%-plus revenue growth and 25%-plus EBITDA growth in the coming years.
UBS modeled 17.5% unit growth in 2026 and a 16% three-year unit CAGR through 2029, underpinned by cash-on-cash returns above 40% at year two, strong new store performance across both newer and existing markets, and significant whitespace. The firm sees potential upside to CAVA's target of 1,000 units by 2032, supported by growing brand awareness in new markets and investments in developing a pipeline of leaders to support new store operations.
UBS said CAVA's premium valuation is justified given a clear path to industry-leading EBITDA growth, and that sustained outsized growth, without the overhang concerns affecting select peers, should support a re-rating of shares higher.
CAVA Group (NYSE:CAVA) shares were upgraded to Buy by UBS, which cited the Mediterranean fast-casual chain's same-store sales resilience, unit expansion potential, and an improved risk/reward following a pullback in shares since April.
"CAVA remains a compelling growth story, which is increasingly scarce in the sector in the current environment," UBS analysts wrote, pointing to differentiated menu offerings, multiple sales catalysts, and healthy new unit returns as key supports for a premium valuation.
UBS models upside to CAVA's 2026 same-store sales guidance of 4.5% to 6.5%, with traffic-driven momentum holding up despite a difficult macro backdrop. The firm sees potential upside to consensus estimates of approximately 7% same-store sales growth in 2026 and roughly 4% annually from 2027 through 2029.
Drivers include CAVA's appeal to health-conscious consumers, a pipeline of menu innovation and limited-time offerings, marketing investments to build brand awareness, digital and loyalty program contributions, and operational improvements tied to technology initiatives, labor investments, and the Project Soul new restaurant design rollout. UBS Evidence Lab data was cited as supporting the sustainability of same-store sales momentum at or above the company's long-term growth algorithm.
The new $90 target implies roughly 38x next-twelve-months EBITDA, up from the prior 36x multiple, reflecting UBS's expectation of 20%-plus revenue growth and 25%-plus EBITDA growth in the coming years.
UBS modeled 17.5% unit growth in 2026 and a 16% three-year unit CAGR through 2029, underpinned by cash-on-cash returns above 40% at year two, strong new store performance across both newer and existing markets, and significant whitespace. The firm sees potential upside to CAVA's target of 1,000 units by 2032, supported by growing brand awareness in new markets and investments in developing a pipeline of leaders to support new store operations.
UBS said CAVA's premium valuation is justified given a clear path to industry-leading EBITDA growth, and that sustained outsized growth, without the overhang concerns affecting select peers, should support a re-rating of shares higher.
Cava Group (CAVA - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this Mediterranean restaurant chain have returned +12.8% over the past month versus the Zacks S&P 500 composite's -1.6% change. The Zacks Retail - Restaurants industry, to which Cava belongs, has lost 0.8% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Cava is expected to post earnings of $0.17 per share, indicating a change of +6.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +8.5% over the last 30 days.
The consensus earnings estimate of $0.55 for the current fiscal year indicates a year-over-year change of +1.9%. This estimate has changed +4.8% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $0.71 indicates a change of +30.2% from what Cava is expected to report a year ago. Over the past month, the estimate has changed +3.9%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Cava.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Cava, the consensus sales estimate for the current quarter of $353.73 million indicates a year-over-year change of +26.1%. For the current and next fiscal years, $1.49 billion and $1.78 billion estimates indicate +26.2% and +19.5% changes, respectively.
Last Reported Results and Surprise HistoryCava reported revenues of $438.27 million in the last reported quarter, representing a year-over-year change of +32.1%. EPS of $0.2 for the same period compares with $0.22 a year ago.
Compared to the Zacks Consensus Estimate of $419.46 million, the reported revenues represent a surprise of +4.49%. The EPS surprise was +17.65%.
Over the last four quarters, Cava surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Cava is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Cava. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Key Takeaways CAVA now expects to open 75-77 net new restaurants in FY26, up from prior guidance.CAVA opened 20 net new restaurants in Q1, expanding to 459 locations across 29 states and D.C.CAVA's 2026 restaurant cohort is tracking in line with or ahead of its strong 2025 class. CAVA Group, Inc. (CAVA - Free Report) is raising its restaurant opening target as new units continue to deliver strong early productivity. The company now expects to open 75-77 net new CAVA restaurants in fiscal 2026, up from its prior outlook of 74-76, signaling confidence in its development pipeline and long-term expansion opportunity.
In the first quarter of fiscal 2026, CAVA opened 20 net new restaurants, ending the period with 459 restaurants across 29 states and Washington, D.C. The restaurant base increased 20.2% year over year, reflecting continued progress in national expansion. During the quarter, the company reported new market openings in Cincinnati, St. Louis and Columbus and stated plans to open in Minneapolis later this year.
CAVA’s growth momentum is being supported by strong new-unit economics. The company said its 2026 restaurant cohort is tracking in line with or ahead of the strength of its 2025 class, with first-quarter new restaurant productivity trending above 100%. Management also noted that new openings continue to exceed expectations in both top-line and margin performance, while systemwide AUVs reached approximately $3 million.
Management indicated that results remain strong across geographies, formats and market types, suggesting that the concept continues to resonate beyond its more established markets. The 2025 vintage is also performing similarly to the 2024 class, indicating that recent cohorts are holding up well as they mature into the comp base.
For CAVA, the raised opening outlook strengthens the case that growth momentum can continue, supported by strong new-unit productivity, broad market acceptance and healthy cohort performance. The consistency of recent restaurant classes suggests that the company’s development model remains fundamentally sound as it expands into new markets. If execution holds as the restaurant base scales, CAVA’s unit-growth runway could remain a key driver of growth.
How CAVA Stacks Up Against CMG and SHAKChipotle Mexican Grill, Inc. (CMG - Free Report) remains a larger-scale development benchmark. In the first quarter of 2026, Chipotle opened 49 restaurants, including 42 Chipotlanes and remains on track to open around 350 restaurants for the full year, with roughly 80% including a Chipotlane. Chipotle’s long-term target of 7,000 restaurants underscores the scale advantage it still holds, but CAVA’s smaller base gives it a longer runway for percentage-based unit growth.
Shake Shack Inc. (SHAK - Free Report) is also accelerating development. In the first quarter of 2026, Shake Shack opened 17 company-operated Shacks, its largest first-quarter opening count, and raised its 2026 company-operated opening outlook to 60-65 units from the prior 55-60 range. Shake Shack’s development cadence reflects strong growth ambition, though CAVA’s above-100% new restaurant productivity gives its unit-growth story an important efficiency component.
Compared with CMG’s mature large-scale expansion model and SHAK’s accelerating company-operated development, CAVA’s growth story stands out for the combination of a smaller restaurant base, raised opening guidance and strong new-unit productivity. With recent cohorts performing well, CAVA’s ability to scale while preserving unit economics remains central to its long-term growth narrative.
CAVA’s Price Performance, Valuation & EstimatesCAVA’s shares have gained 6.1% in the past year against the industry’s 10% growth.
CAVA’s One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, CAVA trades at a forward price-to-sales (P/S) multiple of 5.87, above the industry’s average of 3.25.
CAVA’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CAVA’s fiscal 2026 earnings implies a year-over-year increase of 1.9%. The EPS estimates for fiscal 2026 have increased in the past 30 days.
EPS Trend of CAVA Stock
Image Source: Zacks Investment Research
CAVA stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
From a technical perspective, Cava Group (CAVA - Free Report) is looking like an interesting pick, as it just reached a key level of support. CAVA recently overtook the 20-day moving average, and this suggests a short-term bullish trend.
A well-liked tool among traders, the 20-day simple moving average offers a look back at a stock's price over a 20-day period. This is very beneficial to short-term traders, as it smooths out short-term price trends and gives more trend reversal signals than longer-term moving averages.
Like other SMAs, if a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.
Over the past four weeks, CAVA has gained 12.8%. The company is currently ranked a Zacks Rank #3 (Hold), another strong indication the stock could move even higher.
The bullish case only gets stronger once investors take into account CAVA's positive earnings estimate revisions. There have been 8 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on CAVA for more gains in the near future.
